8 Ways to Cut the Cost of Your Car Insurance

Slash your car insurance and save some money with these great tips.

Comparison Shop

Insurance companies rely on a variety of different algorithms when determining insurance rates for their customers. As a result, you may be able to get a far lower price by using one insurance company over another. By getting quotes from multiple companies, you can be sure that you are getting the best deal. Another option is to check with the insurance department of your state. Oftentimes, they will have data that you can use to compare the average rates charged by different insurers.

Of course, the cost is only one concern. You also need to make sure that the company you are working with is financially sound. You can learn more about the financial well-being of different insurance companies by checking with rating organizations such as Standard & Poor’s or A.M. Best.

When getting quotes for cheaper car insurance quotes, contact a diverse range of insurance companies. You should reach out to insurance companies that use their own agents as well as those that use independent agents. Also, don’t forget to get quotes from companies that sell directly to their clients, bypassing the use of agents altogether.

Finally, don’t get so caught up in searching for the lowest price that you forget to think about the quality of the company. You can find a high-quality insurer by talking to people you know and asking them for recommendations. You can also reach out to the insurance department of your state to find out whether or not a particular company has any complaints lodged against them. Finally, pay attention to the type of customer service that you receive when you are comparing prices. Together, all of this information should help you make an informed decision.

Think of the costs when buying.

If you are shopping for a new vehicle, make sure to find out how much the insurance will cost. The algorithm that determines your insurance rate uses the make, model, age, and price of the vehicle to determine how expensive it is to insure. Typically, high-end vehicles that are more expensive to replace or repair are also more expensive to insure, as are sports cars or other fast-moving vehicles that are more likely to be involved in accidents. The Insurance Institute for Highway Safety has a wealth of information available that you can use to help guide your decision when shopping for a car.

Consider raising your deductibles.

Going with a higher deductible may help decrease the overall cost of your insurance. Even a relatively minor increase in your deductible can make a major difference in your monthly payments. The only thing to keep in mind if you go this route, however, is that you need to be able to come up with the money to cover your deductible before your insurance will kick in. Because of that, you should make sure you have enough money in savings to pay your deductible right away in case you need to file a claim.

Opt for less coverage on older vehicles.

If your vehicle is a bit on the older side, you most likely don’t need to carry collision or comprehensive coverage. A good way to decide whether or not you need this type of coverage is by multiplying the premium by ten. If that cost is higher than the value of your vehicle, the coverage probably is unnecessary. You should be able to find out how much money your car is worth by contacting a local auto dealer or looking the information up online.

Purchase multiple policies from one company.

Oftentimes, insurers offer discounts to clients who purchase more than one type of policy from them. That means that you may be able to save by getting your home insurance, car insurance, and other types of insurance from a single provider.

Keep your credit in good standing.

Negative marks on your credit report can result in higher car insurance rates since insurers use your credit score when determining how much to charge you. Researchers have found that people with lower credit scores tend to file a higher number of claims. You can avoid credit problems by paying your bills on time and reducing the balances of your credit cards as much as you can. Periodically check your credit report for errors and correct any problems right away.

Check if you qualify for a low mileage discount.

If you don’t drive your vehicle many miles each year, you may be able to save money by asking about a low mileage discount. If you carpool, this discount may also be available to you.

Look into group insurance plans.

One unique way to save is by signing up for a group insurance plan. Check with your employer or with any professional organizations where you have a membership to see if they have any group plans available that you could participate in.